2015-03-13T09:57:17-05:00 2014-06-30 420714325 MCGLADREY LLP 9737 WASHINGTONIAN BLVD 400 GAITHERSBURG MD 208787340 990 2013-07-01 540562160 THE POTOMAC SCHOOL POTO 7033564100 PO BOX 430 MCLEAN VA 22101 JOHN KOWALIK HEAD OF SCHOOL 7033564100 2015-03-13 1 WILLIAM E TURCO CPA P00369217 3012963600 2013 2016-02-25 16:41:14Z JOHN KOWALIK PO BOX 430 MCLEAN VA 22101 51279727 0 X WWW.POTOMACSCHOOL.ORG X 1907 DC TO PREPARE STUDENTS TO ACHIEVE ACADEMICALLY AND TO LEAD HEALTHY, PRINCIPLED, AND SUCCESSFUL LIVES. 22 22 653 1080 74446 -23500 2775505 2758068 35914227 37669215 312168 497644 557962 711904 39559862 41636831 3719846 4096085 0 0 21550319 22899534 0 0 1848280 13717447 16989750 38987612 43985369 572250 -2348538 133646727 141356624 58255922 63675063 75390805 77681561 TO PREPARE KINDERGARTEN THROUGH TWELFTH GRADE STUDENTS TO ACHIEVE ACADEMICALLY AND TO LEAD HEALTHY, PRINCIPLED, AND SUCCESSFUL LIVES. 0 0 32892438 4096085 35582100 PROVIDING EDUCATION FROM KINDERGARTEN TO THE TWELFTH GRADE. 2430282 1913145 SUMMER DAY CAMP AND ACADEMIC REVIEW. 145058 173970 THE AERO: SBC (STANDARDS-BASED CURRICULUM) INITIATIVE BRINGS TEAMS OF TEACHERS AND CURRICULUM SPECIALISTS FROM PARTICIPATING PILOT SCHOOLS TOGETHER TO REVIEW THE STANDARDS AND DEVELOP GRADE-LEVEL APPROPRIATE CURRICULUM AND MATERIALS. PARTICIPANTS ARE TRAINED TO SERVE AS TRAINERS TO FACULTY IN THEIR OWN SCHOOLS AND BROADER PROJECT, THUS MAXIMIZING THE IMPACT OF EACH SBC WORKSHOP. 35467778 1 1 0 0 0 0 0 0 0 1 1 1 0 0 1 1 1 0 1 0 1 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 153 0 1 653 1 1 1 0 0 0 0 1 1 0 0 0 0 X 22 22 0 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 VA X DAVID DEJESUS 7037496320 1301 POTOMAC SCHOOL ROAD MCLEAN VA 22101 H LAWRENCE CULP JR CHAIR 1.50 X X 0 0 0 JOHN K DELANEY VICE-CHAIR 1.50 X X 0 0 0 MARJORIE P BRENNAN SECRETARY 1.50 X X 0 0 0 JAMES R SOCAS TREASURER 1.50 X X 0 0 0 MARY LOUISE LEIPHEIMER TRUSTEE 1.50 X 0 0 0 STEVEN J QUAMME TRUSTEE 1.50 X 0 0 0 JOSEPH P ALLEN TRUSTEE 1.50 X 0 0 0 J KEITH AUSBROOK TRUSTEE 1.50 X 0 0 0 SAMEER BHARGAVA TRUSTEE 1.50 X 0 0 0 ENRICO C CECCHI TRUSTEE 1.50 X 0 0 0 VICTORIA CLARKE TRUSTEE 1.50 X 0 0 0 PATRICIA D COLEMAN TRUSTEE 1.50 X 0 0 0 ALAN J DABBIERE TRUSTEE 1.50 X 0 0 0 DAVID W DUPREE TRUSTEE 1.50 X 0 0 0 JAMES B FLEMING TRUSTEE 1.50 X 0 0 0 GRACE GUGGENHEIM TRUSTEE 1.50 X 0 0 0 MARK C LOWHAM TRUSTEE 1.50 X 0 0 0 JEFFREY D NUECHTERLEIN TRUSTEE 1.50 X 0 0 0 LYNNE F O'BRIEN TRUSTEE 1.50 X 0 0 0 RONALD H PEELE JR TRUSTEE 1.50 X 0 0 0 LOLA J SINGLETARY TRUSTEE 1.50 X 0 0 0 LINDA D TURNER TRUSTEE 1.50 X 0 0 0 JOHN KOWALIK HEAD OF SCHOOL 60.00 X 283171 0 44229 DAVID DEJESUS CFO AND COO 60.00 X 231787 0 37985 DONALD FIRKE HEAD, UPPER SCHOOL 50.00 X 154210 0 70881 WILLIAM COOK ASST HOS FOR ACADEMICS 50.00 X 144680 0 36166 CHARLOTTE NELSEN DIRECTOR, ADMISSION & FIN. AID 50.00 X 135547 0 36630 GERALD KOUNTZ HEAD, INTERMEDIATE SCHOOL 50.00 X 127804 0 41060 DABNEY SCHMITT FORMER DIR, DEV. & ALUMNI PROGRAM 50.00 X 193218 0 14447 GEOFFREY JONES FORMER HEAD OF SCHOOL 60.00 X 179916 0 63252 1450333 0 344650 23 1 1 0 COAKLEY & WILLIAMS CONSTRUCTION INC 16 S SUMMIT AVE STE 300 GAITHERSBURG MD 20877 GENERAL CONTRACTOR 4134706 SAGE DINING SERVICES INC 1402 YORK RD LUTHERVILLE MD 21093 FOOD SERVICE 743169 CAVALIER SERVICES INC 2722 MERRILEE DR FAIRFAX VA 22031 JANITORIAL 324018 COX GRAAE & SPACK 2909 M STREET NW WASHINGTON DC 20007 ARCHITECTS 153458 CARNEY SANDOE & ASSOCIATES 5070 NORTH HWY VERO BEACH FL 32963 EMPLOYMENT SERVICE 135905 8 220341 2537727 964314 2758068 TUITION 900099 34344020 34344020 SUMMER PROGRAMS 900099 1913145 1913145 TRANSPORTATION 900099 1001426 928708 72718 ENRICHMENT PROGRAM 900099 253684 253684 MUSIC LESSON FEES 900099 88219 88219 68721 68721 37669215 447975 1728 446247 12447 0 12447 12447 12447 9492749 9443080 49669 49669 49669 391924 220341 121304 270620 270620 132253 78512 53741 53741 OTHER INCOME 900099 241951 241951 INSURANCE REIM 900099 133145 133145 375096 41636831 37596497 74446 1207820 4096085 4096085 625100 549559 44294 31247 17724272 15598816 1246728 878728 1160302 1004799 92588 62915 2078984 1826256 143354 109374 1310876 1156017 88225 66634 1324980 39908 1282301 2771 76150 54827 17515 3808 1147898 909570 178541 59787 23892 17202 5495 1195 819347 593183 97037 129127 581606 459708 100130 21768 1774799 1339612 357473 77714 363219 349786 13433 108801 21333 87468 1636334 1178159 376358 81817 3170443 2282719 729202 158522 337264 261546 62197 13521 DEPARTMENT EXPENSES 2832175 1306911 1520753 4511 SUMMER PROGRAM 1498430 1498430 FOOD AND ENTERTAINMENT 805896 580245 185356 40295 AERO GRANTS 145058 145058 343458 198049 141764 3645 43985369 35467778 6669311 1848280 500 500 16036039 18639168 1239593 501860 42092 30083 1440000 71173 86047 681501 595967 112983540 28680078 79372500 84303462 12580517 17748499 17561203 18518497 4621609 932541 133646727 141356624 1814908 1339771 16052133 18181370 36257087 39847257 1440000 1395497 2691794 2911168 58255922 63675063 X 71293620 74131340 1744279 1003710 2352906 2546511 75390805 77681561 133646727 141356624 X -2348538 4763317 -124023 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 30671763 804573 5164382 1360037 35280681 27322984 339060 3476390 466671 30671763 28586826 320990 -737127 847705 27322984 23773643 575892 4674160 436869 28586826 24133375 148518 3313203 3821453 23773643 0.92740 0.07220 0.00040 0 0 9754656 9754656 93253058 19985852 73267206 9975826 8694226 1281600 84303462 LIMITED PARTNERSHIPS 893522 C 48,498.623 SHS MULTI STRATEGY EQ FD 13929655 F DIRECTIONAL AND RELATIVE VALUE 3695320 F 18518497 INTEREST RATE SWAP AGREEMENT 2584654 DEFERRED COMPENSATION 326514 2911168 X 42405825 4763317 -4072835 690482 41715343 -78512 -78512 41636831 40115069 202535 202535 39912534 4072835 4072835 43985369 PART V, LINE 4: ENDOWMENT FUNDS ARE USED TO PROVIDE FINANCIAL AID, PURCHASE LIBRARY BOOKS, FRAME STUDENT ARTWORK, FUND COMMUNITY SERVICE, FACULTY SALARIES AND ENRICHMENT, SCIENCE PROGRAMS, THEATER AND MUSIC, AND GLOBAL STUDIES. PART X, LINE 2: THE SCHOOL IS GENERALLY EXEMPT FROM FEDERAL INCOME TAXES UNDER THE PROVISIONS OF SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. IN ADDITION, THE SCHOOL QUALIFIES FOR CHARITABLE CONTRIBUTIONS DEDUCTIONS AND HAS BEEN CLASSIFIED AS AN ORGANIZATION THAT IS NOT A PRIVATE FOUNDATION. BUSINESS INCOME WHICH IS NOT RELATED TO EXEMPT PURPOSES, LESS APPLICABLE DEDUCTIONS, IS SUBJECT TO FEDERAL AND STATE CORPORATE INCOME TAXES. FOR THE YEAR ENDED JUNE 30, 2014, THE SCHOOL HAD IMMATERIAL TAXABLE UNRELATED BUSINESS INCOME WITH LOSSES THAT COULD BE CARRIED OVER, AND ACCORDINGLY, NO PROVISION FOR INCOME TAXES IS REQUIRED IN THE ACCOMPANYING FINANCIAL STATEMENTS. MANAGEMENT EVALUATED THE SCHOOL'S TAX POSITIONS AND CONCLUDED THAT THE SCHOOL HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE FINANCIAL STATEMENTS TO COMPLY WITH THE PROVISIONS OF THIS GUIDANCE. THE SCHOOL FILES INCOME TAX RETURNS IN THE U.S. FEDERAL JURISDICTION. WITH FEW EXCEPTIONS, THE SCHOOL IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS BY THE U.S. FEDERAL, STATE OR LOCAL TAX AUTHORITIES FOR YEARS BEFORE 2011. PART XI, LINE 2D - OTHER ADJUSTMENTS: FINANCIAL AID NETTED AGAINST TUITION -4,072,835. PART XI, LINE 4B - OTHER ADJUSTMENTS: COST OF GOODS SOLD REPORTED ON PART VIII, LINE 10B - BOOKSTORE -78,512. PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD REPORTED ON PART VIII, LINE 10B - BOOKSTORE 78,512. UNREALIZED LOSS ON SWAP 124,023. PART XII, LINE 4B - OTHER ADJUSTMENTS: FINANCIAL AID NETTED AGAINST TUITION 4,072,835. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 1 SCHEDULE E, PART I, LINE 3 AN ANNOUCEMENT IS PRINTED IN THE WASHINGTON POST NEWSPAPER. CENTRAL AMERICA AND THE CARIBBEAN 0 0 INVESTMENTS 3695320 0 0 0 0 0 0 3695320 0 3695320 0 0 0 0 0 0 FALL FROLIC CARNIVAL 55093 6677 48416 25833 SPRING AUCTION 545153 211678 333475 95471 1 12019 1986 10033 612265 220341 391924 121304 121304 270620 1 FINANCIAL AID AWARDS TO STUDENTS 188 4072835 VARIOUS AWARDS TO TEACHERS 11 23250 PART I, LINE 2: THE POTOMAC SCHOOL UTILIZES THE SERVICES OF EITHER THE NATIONAL ASSOCIATION OF INDEPENDENT SCHOOLS, STUDENT SCHOLARSHIP SERVICES (SSS), OR TUITION AID DATA SERVICES (TADS) TO HELP EVALUATE EACH STUDENT'S NEEDS FOR FINANCIAL ASSISTANCE. EACH APPLICANT COMPLETES A STANDARDIZED FORM AND AN EVALUATION IS PRODUCED WHICH INCLUDES RECOMMENDATIONS AS TO THE LEVEL OF FINANCIAL ASSISTANCE REQUIRED. THE SCHOOL USES THESE REPORTS AS A GUIDE TO DETERMINE WHICH STUDENTS REQUIRE FINANCIAL ASSISTANCE AND AN ESTIMATE OF THAT NEED. X X X 1 1 X X X X 1 0 0 0 0 0 0 0 0 JOHN KOWALIK HEAD OF SCHOOL 142084 0 0 0 141087 0 7438 0 37423 0 328032 0 0 0 DAVID DEJESUS CFO AND COO 210856 0 0 0 20931 0 21239 0 18811 0 271837 0 0 0 DONALD FIRKE HEAD, UPPER SCHOOL 152674 0 0 0 1536 0 11170 0 61322 0 226702 0 0 0 WILLIAM COOK ASST HOS FOR ACADEMICS 142598 0 0 0 2082 0 16464 0 21773 0 182917 0 0 0 CHARLOTTE NELSEN DIRECTOR, ADMISSION & FIN. AID 133565 0 0 0 1982 0 15500 0 23137 0 174184 0 0 0 GERALD KOUNTZ HEAD, INTERMEDIATE SCHOOL 126200 0 0 0 1604 0 8834 0 34132 0 170770 0 0 0 DABNEY SCHMITT FORMER DIR, DEV. & ALUMNI PROGRAM 87861 0 0 0 105357 0 6405 0 9171 0 208794 0 0 0 GEOFFREY JONES FORMER HEAD OF SCHOOL 169884 0 0 0 10032 0 11475 0 58923 0 250314 0 0 0 PART I, LINE 1A THE SCHOOL COMPENSATES THE HEADMASTER AND VARIOUS DEPARTMENT HEADS. THE SCHOOL PROVIDES THE HEADMASTER AND VARIOUS DEPARTMENT HEADS WITH HOUSING. THE RENTAL VALUE REFLECTS THE FAIR MARKET VALUE FOR COMPARABLE HOUSES IN THE AREA. THE TRANSACTIONS WERE APPROVED BY THE BOARD OF TRUSTEES WITH ADEQUATE DOCUMENTATION. FOLLOWING EMPLOYEES RECEIVED NONTAXABLE HOUSING ALLOWANCE: GEOFFREY JONES (FORMER HEAD OF SCHOOL) - $29,528 JOHN KOWALIK - $27,083 DONALD FIRKE - $39,032 GERALD KOUNTZ - $32,226 PART I, LINE 4A DABNEY SCHMITT, SEVERANCE PAYMENT, $102,819 - THIS AMOUNT IS INCLUDED IN SCHEDULE J, PART II, COLUMN B(III). A FAIRFAX COUNTY ECONOMIC DEVELOPMENT AUTHORITY 540787833 2004-07-12 16430000 REDEMPTION OF PRIOR BONDS AND SCHOOL CONSTRUCTION 0 0 0 B FAIRFAX COUNTY ECONOMIC DEVELOPMENT AUTHORITY 540787833 2005-08-04 20570000 CONSTRUCTION OF NEW UPPER SCHOOL BUILDING 0 0 0 C FAIRFAX COUNTY ECONOMIC DEVELOPMENT AUTHORITY 540787833 2012-09-07 9500000 REFINANCING PRIOR LOAN AND SCHOOL CONSTRUCTION 0 0 0 A 3076984 16430000 16430000 2004 1 0 1 1 B 3227708 20570000 20570000 2006 0 0 1 1 C 348051 9500000 9500000 2013 0 0 1 1 A 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 B 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 C 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 A 0 0 1 0 0 0 0 0 1 B 0 0 1 0 1 1 PNC BANK 28.000000000000 0 0 0 0 1 C 0 1 1 0 1 1 PNC BANK 12.000000000000 0 0 0 0 1 A 1 B 1 C 1 SCHEDULE K, PART IV, LINE 2C, REBATE NOT YET DUE: NO CALCULATION REQUIRED FOR THE C SERIES DUE TO MEETING REBATE EXCEPTION. X 28 959266 CONFIRMATION FROM BROKER X OFFICE SUPPLI 1 5048 COST 0 1 0 FORM 990, PART VI, SECTION A, LINE 4 FORM 990 2013-2014 SUMMARY OF JUNE 2, 2014 REVISED BY-LAWS AMENDMENTS THE POTOMAC SCHOOL AMENDED ITS BY-LAWS EFFECTIVE JUNE 2, 2014. THE SUMMARY OF AMENDMENTS ARE: ARTICLE II.A - THE NUMBER OF TRUSTEES OF THE BOARD ON CERTAIN CONDITIONS MAY TEMPORARILY EXCEED 22 IN THE EVENT THAT THE TERM OF AN OFFICER IS EXTENDED PURSUANT TO EXISTING ARTICLES II.A.2, II.B.1 OR II.B.2. ARTICLE II.A.2 - THE TERM OF A TRUSTEE CAN BE EXTENDED FOR A CONSECUTIVE THIRD TERM UNDER EXTRAORDINARY CIRCUMSTANCES. ARTICLE II.B.1 - THE TERM OF THE CHAIR CAN BE EXTENDED UP TO A 4TH YEAR. IF THE TERM OF THE CHAIR IS EXTENDED BEYOND A 3RD YEAR, THE BOARD SHALL ELECT A CHAIR-ELECT. ARTICLE III.C - THE CHAIR-ELECT, IF ANY, SHALL SERVE ON THE EXECUTIVE COMMITTEE. FORM 990, PART VI, SECTION B, LINE 11 THE 990 IS REVIEWED AND APPROVED BY THE AUDIT COMMITTEE. AFTER THAT IT GOES TO THE FULL BOARD FOR REVIEW AND APPROVAL. FORM 990, PART VI, SECTION B, LINE 12C FOR KEY EMPLOYEES: WHERE A POTENTIAL CONFLICT OF INTEREST EXISTS, IT SHALL BE THE RESPONSIBILITY OF THE PERSON INVOLVED OR ANY OTHER PERSON WITH KNOWLEDGE TO NOTIFY THE HEAD OF SCHOOL OF THE CIRCUMSTANCES RESULTING IN THE POTENTIAL CONFLICT SO THAT IT CAN BE COMMUNICATED TO THE BOARD OF TRUSTEES WHO CAN, IN COUNSEL WITH THE HEAD OF SCHOOL, THEN PROVIDE SUCH GUIDANCE AND TAKE SUCH ACTION AS THEY SHALL DEEM APPROPRIATE. THIS STATEMENT SHALL BE SIGNED ANNUALLY BY ALL KEY EMPLOYEES. FOR BOARD OF TRUSTEES: WHERE A POTENTIAL CONFLICT OF INTEREST EXISTS, IT SHALL BE THE RESPONSIBILITY OF THE PERSON INVOLVED OR ANY OTHER PERSON WITH KNOWLEDGE TO NOTIFY THE CHAIR AND VICE CHAIR OF THE BOARD OF TRUSTEES AS WELL AS THE CHAIR OF THE COMMITTEE ON TRUSTEES OF THE CIRCUMSTANCES RESULTING IN THE POTENTIAL CONFLICT SO THAT THE BOARD OF TRUSTEES CAN PROVIDE SUCH GUIDANCE AND TAKE SUCH ACTION AS IT SHALL DEEM APPROPRIATE. THIS STATEMENT SHALL BE SIGNED ANNUALLY BY ALL TRUSTEES. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION COMMITTEE REVIEWS AND DISCUSSES THE TOTAL COMPENSATION PACKAGES OF THE HEAD OF SCHOOL AND SCHOOL ADMINISTRATORS. SALARY INFORMATION ONLY FOR SIMILAR POSITIONS FROM COMPARABLE SCHOOLS ARE USED TO ESTABLISH A REASONABLE COMPENSATION. THE COMMITTEE HAS THE AUTHORITY TO APPROVE THE COMPENSATION PACKAGE OF THE HEAD OF SCHOOL AND SCHOOL ADMINISTRATORS ON AN ANNUAL BASIS. FORM 990, PART VI, SECTION C, LINE 19 A PUBLIC INSPECTION FILE IS MAINTAINED ONSITE THAT INCLUDES THE 990, GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS. FORM 990, PART XI, LINE 9: UNREALIZED LOSS ON SWAPS -124,023.